Jamna Auto acquires Tata Motors' leaf-spring plant assets

* Setting up of new manufacturing facility to supply for World Truck project & exports

Chennai, November 14, 2007: Jamna Auto Ltd, a part of the JAI Group and one of world's top 7 producers of commercial vehicle springs, confirms the acquisition of the leaf-spring plant of Tata Motors' Ltd at Jamshedpur. Jamna Auto also confirms setting up of additional manufacturing facility for leaf and parabolic springs for supplying to Tata Motors World Truck project and for export purposes.

Jamna Auto Industries is an undisputed leader in the domestic spring's space with a market share of 60%. It supplies to all major manufacturers of commercial vehicles in India. The company has been regularly supplying springs and has enjoyed long-standing relations with Tata Motors.

Commenting on the acquisition, Mr. Randeep Jauhar, CEO Jamna Auto Industries, said, "We have seen a major spurt in the demand of leaf-springs in the domestic market in the past few years. The Indian economy has been growing at a rate of over 9% and this kind of growth needs to be backed by strong infrastructure. Commercial vehicles form an integral part of the growing infrastructure and therefore we expect increasing demand for our products. Most of the commercial vehicle manufacturers are planning to increase their exposure in the international market, which would result in an additional demand, going further. "

Mr. Pradeep Jauhar, COO added, "Jamna Auto is not just a supplier of springs to Tata Motors but a long term partner. This acquisition will be the first step and we will set up a world class manufacturing facility for leaf and parabolic springs. This new facility will help us achieve our objective of entering the exports market in the future. Our group has more than five decades experience in providing customized products of international quality at competitive pricing to our customers. This has been evident from the consistent up-trend in our domestic market share over the years."

Jamna Auto Industries is a part of the JAI Group which has another company Jai Parabolic Springs Ltd (JPSL) under its banner. JPSL manufactures leaf and parabolic springs and has a manufacturing plant in Chennai. MAP Springs, a marketing outfit for springs and auto products, is also a part of the JAI Group. In order to build economies of scale, derive the benefits of operating synergies between the companies and leverage the combined balance sheets for growth, Jamna Auto Industries has decided to merge JPSL and MAP Springs with itself. The merger swap ratio would be 2 equity shares of JPSL for 1 equity share of Jamna. The Company has filed the application of the merger for the approval of the High Court of Punjab & Haryana.

The company recently announced its Q2 & H1 FY08 results. For the second quarter ended September 30, 2007, the company recorded sales turnover of Rs 81.70 crore and net profit of Rs 4.03%, up 12.03% and 47.08% respectively.

For half-year ended September 30, 2007, the company recorded sales turnover of Rs 164.43 crore and net profit of Rs 7.91 crore, up 20.96% and 56.32% respectively.

Clearwater Capital Partners - a Private Equity player - invested Rs 40 crore of equity in the company in June 2007 at Rs 72 per share.

About Jamna Auto Industries:

Incorporated in 1965 Jamna Auto Industries Limited (BSE: JAMNAUTO, CODE: 520051), is one of the top Seven manufacturers of commercial vehicle springs in the world. A part of the JAI Group, Jamna Auto manufactures multi leaf springs and parabolic leaf springs for major OEMs (Original Equipment Manufacturers) in India and abroad. With plants at Yamuna Nagar (24,000 MTPA) and Malanpur (4,80,000 MTPA).

Jamna Auto's domestic customers include Tata Motors, Ashok Leyland, Eicher Motors, Volvo, Swaraj Mazda, Ford India, General Motors, Suzuki and Toyota. The company has approved exports customers viz. Daimler, Volvo, General Motors and Ford. For more details visit us at www.jaispring.com